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Friday 17 April 2009
Some mainland Q1 loans didn’t reach real economy
About one-fifth of mainland banks’ new first-quarter lending in the form of short-term discounted bills did not flow into the real economy, the official Shanghai Securities News reported on Friday.
About one-fifth of mainland banks’ new first-quarter lending in the form of short-term discounted bills did not flow into the real economy, the official Shanghai Securities News reported on Friday.
That would suggest about 300 billion yuan (HK$340.80 billion) from the 1.48 trillion yuan of new discounting bills in the quarter was channelled to stocks and other assets or used for arbitrage business, according to calculations based on central bank statistics.
That would amount to 6.55 per cent of the 4.58 trillion yuan in total new loans extended by mainland banks in the first quarter of this year, although analysts had said they estimated the amount at about 10 per cent or more.
The figure is marginal, however, compared with the 18 trillion yuan in combined market capitalisation of the Shanghai and Shenzhen stock exchanges.
Short-term bill discounting business accounted for an unusually high 32 per cent of the banks’ total new loans in the first three months of this year, sparking worries that much of the lending might be fuelling speculative activity in the markets rather than supporting the rapidly slowing economy.
The Shanghai Securities News said the China Banking Regulatory Commission was tightening control over banks’ bill discounting business to address such worries.
“The CBRC is urging banks to manage short-term discounting bills in the same way as they manage credits, and has ordered that bank staff working over the counter not be involved in such business,” the newspaper said, citing unnamed authoritative sources.
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Some mainland Q1 loans didn’t reach real economy
Reuters in Shanghai
17 April 2009
About one-fifth of mainland banks’ new first-quarter lending in the form of short-term discounted bills did not flow into the real economy, the official Shanghai Securities News reported on Friday.
That would suggest about 300 billion yuan (HK$340.80 billion) from the 1.48 trillion yuan of new discounting bills in the quarter was channelled to stocks and other assets or used for arbitrage business, according to calculations based on central bank statistics.
That would amount to 6.55 per cent of the 4.58 trillion yuan in total new loans extended by mainland banks in the first quarter of this year, although analysts had said they estimated the amount at about 10 per cent or more.
The figure is marginal, however, compared with the 18 trillion yuan in combined market capitalisation of the Shanghai and Shenzhen stock exchanges.
Short-term bill discounting business accounted for an unusually high 32 per cent of the banks’ total new loans in the first three months of this year, sparking worries that much of the lending might be fuelling speculative activity in the markets rather than supporting the rapidly slowing economy.
The Shanghai Securities News said the China Banking Regulatory Commission was tightening control over banks’ bill discounting business to address such worries.
“The CBRC is urging banks to manage short-term discounting bills in the same way as they manage credits, and has ordered that bank staff working over the counter not be involved in such business,” the newspaper said, citing unnamed authoritative sources.
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